(Finance) – It slows down more than expected monetary mass M3 in the Eurozone in November. The annualized growth rate of the aggregate M3, recorded monthly by European Central Bank (ECB)stands at 4.8% from 5.1% in the previous month and compared to the +5% estimated by analysts.
The growth of loans to the private sectorespecially loans to familiesstands at 4.1% (from 4.2% in October), while that of loans to non-financial companies it drops to 8.4% from 8.9%.
The money supply M3 is a broad indicator that includes two other indicators, M1 and M2. The first is made up of circulating money and sight deposits. The second results from the sum of M1 and fixed-term deposits. By adding repurchase agreements, money market securities and securities with maturities of up to two years to M2, we obtain the aggregate M3, the first pillar of the ECB’s monetary policy.